1. What is the meaning of the term funds as used in governmental accounting?
2. Explain and give an example of the following terms: nonspendable, restricted, committed, and assigned fund balance.
3. Go to the State of Maryland Comprehensive Annual Financial Report for the fiscal year ended June 30, 2015. The governmental fund financial statements start on page 30. Why are there no long-term assets and long-term liabilities reported on the Balance Sheet Governmental Funds?
4. What are the major funds reported on the State of Maryland Statement of Net Fund Position Enterprise Funds for June 30, 2015? What does the information indicate to you?
5. Governments and other nonprofits use accounting procedures that are quite different from for-profit entities. What are these differences? Why do you think these differences developed over time?
6. Look at the Comprehensive Annual Financial Report (CAFR) for the city or town in which you live. What funds do you find on the report? For what are these funds used to account?